The Securities and Exchange Commission (SEC) has asked the Investments and Securities Tribunal (IST) to order the freezing of bank accounts belonging to Crypto Bridge Exchange (CBEX) and 25 other defendants accused of running an unlawful digital asset investment scheme that allegedly defrauded Nigerians of about N1.3 trillion.

The request was made at the first sitting of the sixth Tribunal in the case SEC & Anor v Crypto Bridge Exchange (CBEX) and 25 Others (IST/OA/02/2025), presided over by Tribunal Chairman, Hon Aminu Jinaidu.

The Commission urged the Tribunal to compel commercial banks and other financial institutions to immediately freeze all accounts linked to the defendants.

It also sought the seizure of houses and other assets allegedly acquired with funds collected from unsuspecting investors.

SEC said CBEX operated illegally by presenting itself as a digital asset and capital market platform despite failing to register with the Commission.

It added that the company enticed Nigerians with unrealistic investment returns.

“CBEX is an unregistered platform promising users 100 per cent return on investment within 30 days, which is unlawful and contrary to Section 3(b) of the Investments and Securities Act 2025,” SEC told the Tribunal.

The regulator noted that the Securities and Futures Commission of Hong Kong had, on 23 April 2024, issued an advisory declaring CBEX a suspicious virtual asset entity, warning that it bore a misleading resemblance to a legitimate Chinese organisation.

The Tribunal observed that CBEX and the other defendants were absent and unrepresented in court.

Consequently, Hon Jinaidu directed that hearing notices be served on them through national newspapers.

CBEX entered the Nigerian market in July 2024, operating via a website and mobile app.

It claimed to deploy advanced Artificial Intelligence to generate unusually high profits from cryptocurrency trading, promising returns of up to 100 per cent within a 40–45 day lock-in period.

The scheme collapsed months later, leaving thousands of investors stranded. Investigations and victim testimonies indicated that CBEX functioned as a Ponzi scheme that siphoned more than N1.3 trillion (around $800 million) before vanishing.

The Tribunal adjourned the matter to 27 January 2026.